US STOCKS-Trade hopes move S&P 500 close to new record high

* Tech, energy, financials lead gains
* Boeing extends fall after brokerages downgrade
* Coty jumps on plan to sell professional beauty business
* Indexes up: Dow 0.21%, S&P 500 0.69%, Nasdaq 0.91%

(New throughout, updates prices, market activity and comments
to market close)
By April Joyner
NEW YORK, Oct 21 (Reuters) - The benchmark S&P 500 stock
index rose within striking distance of a record high on Monday
as further signs of progress toward resolution of the U.S.-China
trade war boosted shares in sectors sensitive to trade and the
global economy.
U.S. President Donald Trump continued to strike optimistic
tones, while White House adviser Larry Kudlow said tariffs on
Chinese goods scheduled for December could be withdrawn if talks
go well. "People are continuing to be optimistic that some type of
trade truce with China can be pushed forward," said Chris
Zaccarelli, chief investment officer of Independent Advisor
Alliance in Charlotte, North Carolina.
Trade-sensitive technology stocks .SPLRCT rose 1.1%,
adding the most to the S&P 500. Semiconductor companies, which
derive much of their revenue from China, especially climbed. The
Phialdelphia SE Semiconductor Index advanced 1.9%.
The economically sensitive energy .SPNY and financial
.SPSY sectors led percentage gains on the S&P 500. Energy
shares gained 1.9% while financials rose 1.4%.
Stocks have also benefited from the steepening U.S. Treasury
yield curve as well as better-than-expected corporate earnings
thus far, said Mona Mahajan, U.S. investment strategist at
Allianz Global Investors in New York. In Monday's trading, the
S&P 500 rose above 3000 to come within 0.7% of its record
closing high.
"We're watching for a breakout to the upside of that range,"
she said. "Thus far, the early signs we're seeing are
favorable."
Losses in Boeing Co BA.N capped gains in the Dow Jones
Industrial Average. Boeing shares shed 3.8% as several
brokerages downgraded ratings on the stock following reports
that cast doubt on when the 737 MAX jet will return to service.
The Dow Jones Industrial Average .DJI rose 57.44 points,
or 0.21%, to 26,827.64, the S&P 500 .SPX gained 20.52 points,
or 0.69%, to 3,006.72 and the Nasdaq Composite .IXIC added
73.44 points, or 0.91%, to 8,162.99.
This week's earnings lineup includes high-profile companies
such as Boeing, Microsoft Corp MSFT.O , Procter & Gamble Co
PG.N , United Parcel Service Inc UPS.N and Caterpillar Inc
CAT.N .
According to data from Refinitiv, analysts have projected
the first earnings contraction since 2016 for S&P 500 companies.
But of the 75 companies that have reported results so far, only
12% have come short of earnings estimates.
Halliburton Co HAL.N shares gained 6.4% after the oilfield
services provider detailed further planned cost reductions.
Coty Inc COTY.N shares surged 13.4% after the cosmetics
maker said it planned to sell its professional beauty business
with brands such as Wella and OPI. U.S.-listed shares of Teva Pharmaceutical Industries Ltd
TEVA.N TEVA.TA jumped 8.7% after the company announced
progress toward settling remaining opioid-related litigation.
Advancing issues outnumbered declining ones on the NYSE by a
1.95-to-1 ratio; on Nasdaq, a 2.09-to-1 ratio favored advancers.
The S&P 500 posted 41 new 52-week highs and two new lows;
the Nasdaq Composite recorded 93 new highs and 64 new lows.
Volume on U.S. exchanges was 5.92 billion shares, which was
below the 6.55 billion average for the the last 20 trading
sessions.